Great Quartz article on why EMV has been a disaster in the US. Some retailers ask you to insert the chip into the card reader, instead of swiping, but some of them ask us just the opposite – they say not to insert the card, and just swipe. What is going on?
All of this started when the US decided to move to the chip standard—known in the industry as EMV. The US process was different from those of other countries, where governments instituted a mandate to upgrade everything by a certain date. The US implemented something called a “liability shift”—essentially, if retailers didn’t support chip card payments by buying a new, expensive machine, they’d be held accountable for any sort of fraud that occured in their store. Usually, that’s the bank’s responsibility. So, as long as retailers purchased the new chip-card reading terminals, liability would shift back to the bank.